Business Confidence Subdued Amid Tariffs but 'Worst-Case' Less Likely: BoC Survey
SIMCOE COUNTY, ONTARIO, JUL 21 – Canada's economy is forecast to shrink by 2.1% due to Trump's tariffs, which include high levies on steel, aluminum, cars, and energy, impacting key trade sectors, analysts say.
- On April 2, 2025, President Donald Trump announced 'Liberation Day' tariff hikes, followed by a 90-day suspension ending July 9, 2025 that tested trade partners' limits with tailored levies.
- Trump imposed a flat 10 percent tariff on all imports with country-specific levies, designing the plan as a stress test for global partners and administration coordination.
- During the 90-day pause, the U.S. secured agreements with the UK and Vietnam, with the UK lowering barriers on U.S. goods and Vietnam capping tariffs at 20 percent with anti-transshipment pledges.
- When the pause concluded on July 9, 2025, the tariff policy's mixed results revealed strategic wins and unforeseen pitfalls as the universal levy proved manageable for many smaller economies despite resistance.
- Ahead of the July 30, 2025 interest rate decision, findings show the Bank of Canada reports found tariff-related uncertainty still dampens sentiment but lessens worst-case scenarios, with 28 percent of firms planning for a recession.
23 Articles
23 Articles
Business Confidence Subdued Amid Tariffs but ‘Worst-Case’ Less Likely: BoC Survey
A pair of reports from the Bank of Canada say tariff-related uncertainty continued to put a damper on business and consumer sentiment in the second quarter, but the worst-case trade scenarios previously anticipated seem less likely. The central bank’s business outlook survey said 28 percent of firms are now planning for a recession in Canada, down from 32 percent last quarter but still up from 15 percent over the previous two quarters. Sales out…

Business confidence subdued amid tariffs but 'worst-case' less likely: BoC survey
Breaking News, Sports, Manitoba, Canada
Trump's tariff tantrum could actually be a huge win for Canada's economy
Getty Images; Tyler Le/BIThe whole thing about Canadians is that they're remarkably nice. Except lately, they haven't been feeling so warm and fuzzy, namely toward their neighbors to the south.Given everything that's going on — President Donald Trump's on-and-off trade war, his remarks about making the country the 51st state — Canada has a right to be annoyed with the United States. If your longtime bestie suddenly turned on you for no apparent …
Coverage Details
Bias Distribution
- 58% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium